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CHINA E-LOBBY UPDATE: FEBRUARY 11, 2004


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TOP STORY: COMMUNISTS PULLING OUT ALL STOPS TO DEFEAT CHEN
PRC WILL PRESS U.S., FIND MORE �SPIES,� AND HELP BUSINESSMEN RETURN TO VOTE

The People�s Republic of China is throwing everything it can at Taiwanese President Chen Shui-bian to help his opposition defeat him in the March 20 presidential election.  The Communists are pushing President Bush to �subtly but firmly indicate their non-support for Chen's re-election bid� (
Willy Wo-Lap Lam, CNN).

The Communists made issue, again of two referenda, which will share the ballot with the presidential vote.  One calls for a missile defense to blunt the threat of the 500 PRC missiles pointed at Taiwan.  Chen called the referenda �humble and responsible� (
Taiwan News via Epoch Times, HK).  The PRC said they would �endanger peace� (Washington Post).

The Communists also plan to more �Taiwan spies� arrests (see
12/24/03, 12/31/03, and 1/14 Updates) in a thinly veiled attempt to smear Chen as reckless with intelligence data, to the point of exposing the �spies.�  For the most part, the �arrests� seem to be generating more outrage towards the PRC than towards Chen (BBC).

The PRC will also help hundreds of thousands of Taiwanese working on the mainland � thought to be supporters of Chen�s Nationalist opponent Lien Chan � return in time to vote.  The Communists have even let the Nationalist ticket, also known as �pan-blue,� set up a campaign office in Shanghai (Central News Agency, Taiwan, via
Epoch Times). 

The PRC then had the audacity to claim it �will not interfere with elections in Taiwan� (
CNN).  The �pan-blue� forces have moved much closer to Communist China since 2000, when Chen was elected.  In response, Lee Teng-hui, the former Nationalist President who brought democracy to Taiwan, bolted the party and is now supporting Chen in a neck-and-neck race.

OTHER REPUBLIC OF CHINA (TAIWAN) NEWS
TAIWANESE FUGITIVE, HIDING IN COMMUNIST CHINA, TRIES TO SMEAR CHEN
Meanwhile, Chen Yu-hao, one of Taiwan�s ten most wanted fugitives now hiding in the PRC, claimed he bribed President Chen with �black gold � (money).  Since Chen the fugitive is making the claim from the mainland, and made a major �donation� to Lien�s running mate James Soong, most see this as another anti-Chen smear (Taipei Times via Epoch Times).

U.S. OFFICIALS SAYS REFERENDUM OK; U.S. TO STAND BY TAIWAN
Meanwhile, Deputy Assistant Secretary of State Randall Schriver made more public the American shift since President Bush�s December slap at Taiwan.  Schriver said of the upcoming vote �that question does not alter the status quo� (Voice of America via
Epoch Times).  The U.S. made similar comments last month (see 1/21 Updates).

Deputy Assistant Defense Secretary Richard Lawless went even further, publicly stating, �If deterrence fails, Taiwan is supported by the U.S. and its allies . . . We must be prepared to swiftly defeat [China's] use of force� (
Bill Gertz, Washington Times). 

CHEN SHUI-BIAN SAYS TAIWAN IS �INDEPENDENT, SOVEREIGN COUNTRY�
As his campaign for re-election began in earnest, President Chen Shui-bian called Taiwan �an independent, sovereign country� (
Newsmax).  The fact that Communist China repeatedly claims sovereignty over Taiwan, despite having never set foot there, is the only reason this public reflection of reality is making any waves.

KIRIBATI PRESIDENT VISITS TAIWAN
Anote Tong, the President of Kiribati, visited Taiwan this week, five months after he threw a wrench into the PRC�s space program by recognizing Taiwan (CNA via
Epoch Times).  The Communists, hoist by their own �one China� petard, cut off relations with Kiribati, and tore down their space communications center (see 11/19/03 and 12/3/03 Updates).

HONG KONG NEWS
HK OFFICIAL VISITS BEIJING TO �DISCUSS� REFORM
The Communist-appointed regime in Hong Kong began the theatrics of �talks with Chinese leaders in Beijing about the prospects for greater democracy in the former British colony� (BBC) this week.  Less than a week later, the Communists had their one country, one-and-a-half system response: �China will not go along� (VOA via Epoch Times).

TIBET NEWS
HUMAN RIGHTS WATCH CALLS FOR RELEASE OF TIBETAN �BOMBERS�
Human Rights Watch called for Communist China to release longtime anti-Communist Lama Tenzin Delek Rinpoche and fellow Tibetan Lobsang Dondrup from jail.  HRW rightly called their imprisonment �the Chinese government�s umpteenth attempt to repress Tibetans in terms of politics, culture and religion� (Asia News). 

The Communists claim the men had a role in bombings in Sichuan province (see
3/12/03 Update), but held the trial in secret.  No one outside the PRC believes the charges. 

NEWS FROM THE FALUN GONG WAR
HAIR PRODUCTS MAKER USING SLAVE LABOR OF PRACTITIONERS
Henan Rebecca Inc., a major PRC-owned producer of hair products (it also uses the brand names Shake-N-Go Hair and Royal Imex, Inc.), is using Falun Gong slave labor to make its products.  The practitioners are �bought� from other labor camps for roughly $100, moved to camps in Henan province, and worked to death.  Report: Falun Dafa Information Center

NTDTV REPORTER HARRASSED OUT OF PHILADELPHIA EVENT FOR HER BELIEFS
A Lunar New Year event in Philadelphia became an ugly spectacle of the long arm of Communist China as a math professor at Temple University harassed a reporter from New Tang Dynasty Television � who happened to be a Falun Gong practitioner � until she left the event.  The local Communist Chinese consulate co-sponsored the event (
Epoch Times).

TAIWANESE PRACTITIONERS SUE FRANCE OVER LUNAR NEW YEAR TREATMENT
Falun Gong practitioners from Taiwan who visited France for Lunar New Year celebrations, and were promptly jailed for their beliefs (see
1/28 Update) are now suing France for the abuse they suffered.  Report: Epoch Times

OTHER HUMAN RIGHTS AND FREEDOMS NEWS
COMMUNIST THUGS DESTROYS HOMES, BEATS OWNERS DURING FORCED EVICTION
Communist China forcibly evicted seven families from their homes in Liaoning Province with the use of about 40 thugs who destroyed the homes �while residents still occupied the houses� (Epoch Times).  The thugs also �beat a few of those evicted, injuring one woman.�  In the PRC, residents own their homes, but the Communists own the land under them.

COMMUNIST CHINA WON�T REVEAL HOW MANY IT EXECUTES
Communist China claims it �does not publish statistics� (
Epoch Times) on the number of executions it commits.  The last report on the subject showed the PRC executing more people, including many for white-collar crimes and some for purely political reasons, than the rest of the world combined (see 1/2/02 Updates).

CADRE WHO HAD ROLE IN TIANAMEN SQUARE MASSACRE SAYS JIANG FRAMED HIM
Chen Xitong was one of the Communist cadres promised big things after his role in the Tiananmen Square massacre of 1989.  When he ended up with the top local party post in Beijing, he complained that it wasn�t enough.  Almost a decade later, the fellow who won the top party post � Jiang Zemin � sent him to prison for corruption (
Epoch Times).

Chen now claims Jiang, who still holds the powerful post of Chairman of the Central Military Commission, framed him because of his post-Tiananmen complaints.  If true, Chen would arguably become of the most ironic human rights abuse victim in Communist China.

EPIDEMIC NEWS
BIRD FLU CONTINUES TO RAGE
The bird flu that first popped up � with no mention from the Communists � in the PRC last year (see last Update) has reached as many as 13 provinces.  Communist China insists no humans have been infected.  Reports: CNN, BBC

CORRUPTION NEWS
AUDITOR FINDS EMBEZZLEMNT OF OVER $2 BILLION, OVER 2,500 CADRES FIRED
Communist cadres embezzled over $2 billion last year, according to the Communists� own audit.  The �full spectrum of accounting misconduct� (Epoch Times 2/8) included �departments giving out fines without justification, abusing expense accounts, and placing funds into the wrong treasury accounts.�  Hundreds of programs were looted.

During the first eleven months of 2003 �2,603 County/Section-level officials were dismissed for corruption� (
Epoch Times 2/6).  An outside group, Transparency International, estimated the cost of corruption to be roughly 15% of the entire economy of the PRC.

PRC-OWNED BANK MISSING BILLIONS OF DOLLARS AS PM CALLS FOR BANK REFORM
Meanwhile, the office that performed the above audit also probed the Industrial and Commercial Bank of China, one of the PRC�s �big four� Communist-run banks.  The office found �legal action for 58 separate cases of mismanagement of funds� (
Epoch Times).  It did not find over $4 billion that it called �missing.�

The new came just before Communist Premier Wen Jiabao called �for quicker reform in the ailing banking system� (VOA via
Epoch Times), in part due to the PRC-run banks having �a large ratio of non-performing loans.�

XINHUA UNDER PROBE FOR EMBEZZLMENT CASE
Han Bishi, who worked in the Shanghai branch for the Communist-run Xinhua news agency, is under suspicion for having �kept in his personal accounts over 30 million yuan from advertising transactions with international companies� (Radio Free Asia via
Epoch Times). 

OTHER MAINLAND NEWS
PRC ASKS: WHERE DID THE RADIOACTIVE STUFF GO?
Communist China is �urgently searching for a quantity of radioactive material stolen from a construction site� (BBC).  The radioactive Caesium-137 �explodes when brought into contact with water, and can cause blood diseases, tumours (UK sp) and birth defects.�

COMMUNISTS INVESTIGATING UNPAID WAGES; �UNION� BELITTLING PROBLEM
The problem of unpaid wages in Communist China is so bad that eight Cabinet departments are involved in investigating the issue.  Part of the problem is the reaction of local cadres and the Communist-run �union,� both of which are seriously underreporting the issue.  Report:
Asia Times via Epoch Times

POLLUTION TURNS RIVER OUTLETS INTO LIFELESS VOIDS
Pollution is so bad in Communist China�s rivers that the worst 20 river outlets to the ocean �even lack plant and animal life� (
Epoch Times).  The pollution is due to rampant Communist overdevelopment that would never occur in a free market.

PROBLEMS PLAGUE FINANCIAL COMPANIES IN PRC
Two PRC-owned financial institutions are running into trouble.  China Construction Bank, preparing for an upcoming initial stock offering, had to clear $14.5 billion in bad loans.  Meanwhile, China Life, an insurance company on the stock market since last year, admitted to $600 million in �accounting irregularities� (
BBC), �triggering heavy selling of its shares.�

ANOTHER COMMUNIST PLAN FOR FARMERS IS LAUNCHED AS GRAIN PRODUCTION FALLS
Communist China tried once again to �close the wealth gap between town and country� (
BBC) with more plans �to modernise (UK sp) agriculture and create rural industry.�  Several previous efforts to improve the lot of the impoverished rural interior have been spectacular failures.  Also reporting: VOA via Epoch Times

As a result of high taxes and fees � most of which line the pockets of local cadres and the PRC-run distribution network � farmers have continued to suffer in depravation.  That, in combination with the loss of farmland due to reckless overdevelopment, has led to grain production falling for �four years in a row� (
Willy Wo-Lap Lam, CNN).

NEWS ON COMMUNIST CHINA, EAST TURKESTAN, AND THE TERRORIST WAR
SEVEN MEMBERS OF �XINJIANG� ACROBATIC GROUP DEFECT TO CANADA
Seven members of the Canadian tour of the Xinjiang Acrobatics Group (�Xinjiang� is the Communist name for occupied East Turkestan) defected to Canada.  The Canadian Uighur Association assisted them.  Uighurs, the original inhabitants of East Turkestan, have been brutally persecuted since the Communist occupation in 1949.  Reports: Epoch Times, BBC

Since September 11, 2001, Communist China has tried to convince the world that the Muslim Uighurs were full of bin Ladenites.  Numerous outside accounts have instead found them to be the most pro-American Muslims on Earth (see
10/17/01, 12/21/01, 10/23/02, and 11/5/03 Updates).

Check out the Communist China and the Terrorist War page.

NORTH KOREA NEWS
MAN WHO EXPOSED NK GAS CHAMBERS UNDER ARREST IN COMMUNIST CHINA
Communist China now has under arrest Kang Byong-sop, the brave man who smuggled out a document that exposed North Korea�s use of gas chambers to test chemical weapons on political prisoners.  Activist Kim Sang-hun demanded the west keep the PRC from sending Kang back to the Stalinist regime, which now will certainly kill him (BBC).

For more on Communist China�s Stalinist ally, sign up for Monday�s North Korea Report.

OTHER AMERICAN-RELATED NEWS
BUSH WAIVED TECH-TRANSFER LAW FOR BOEING SALES WITH MISSILE CHIPS
Last year, Boeing sold Communist China �several Boeing 737-800 commercial jets� that included guidance chips of a type used in �advanced U.S. missiles and warplanes� last year under of Bush Administration waiver of laws banning military-related sales to Communist China.  Report:
Bill Gertz, Washington Times

The Administration then �amended the International Traffic in Arms Regulations to ease export regulations on QRS11 chips when they are inside commercial aircraft.�  The Pentagon opposed both moves, but was overruled in the interests of commerce, a motivation most associated with the Clinton Administration regarding technology and Communist china.

XINHUA PURCHASE OF MARKET NEWS WORRYING PRESS ACTIVISTS
The Communist-run Xinhua news agency �recently announced plans to buy U.S.-based Market News� (
Epoch Times).  The news dismayed a number of press watchers, including the Committee to Protect Journalists, which rightly called Xinhua �the most firmly centralized, controlled media in China, it�s the mouth piece for the Communist party.�

TIBETAN NUN OUT OF JAIL
Sonam, the Tibetan nun held in jail by the Department of Homeland Security (DHS) for five months, was suddenly set free last week, mere days after the
Washington Post brought her case to the public (see 1/28 Update).  DHS gave no reason for its change of heart.

CITIBANK MARKETS CREDIT CARDS IN PRC, SORT OF
Citibank has begun offering credit cards to Communist China; at least that�s what they�d like everyone to believe.  In fact, since �China's banks remain largely closed to foreign investors� (
Washington Post), the card is being offered by a joint venture of Citibank and the PRC-run Shanghai Pudong Development Bank.

U.S. GETS G-7 TO ISSUE PRC CURRENCY PEG CRITISM, DISGUISED IN DIPLOMATESE
Buried in the usual diplomatic language that makes anything concrete turn to jello was this statement at the end of a G-7 meeting among the world industrial democracies: �More flexibility in exchange rates is desirable for major countries or economic areas that lack such flexibility� (
Washington Post).

According to U.S. Treasure Secretary Tony Snow, this was directed at Communist China, who deliberate devaluation of its currency against the dollar has damaged American industry and that of our Asian allies.  Snow said the statement was �written in fairly plain English, and I think it speaks for itself."  It does?

WAL-MART CAPITALIZING ON COMMUNISTS CRACKDOWN ON INDEPENDENT LABOR
Wal-Mart�s involvement in Communist China has engendered much criticism, the latest coming through the
Washington Post.  The Post details how Communist China and Wal-Mart have collaborated thanks to �harsh (Communists) punishment for anyone with designs on organizing a labor movement.�

ADMIRAL THOMAS MOORER DIES; IN RECENT YEARS HE WARNED OF PRC RISE
Admiral Thomas Moorer, a retired Chairman of the Joint Chiefs of Staff, passed away last week.  Toward the end of his life, the admiral was a strong supporter of a tough policy against Communist China, and warned of the danger of that after the fall of the Soviet Union, �the Chinese Communists have filled this vacuum� (
Newsmax).

INTERNATIONAL NEWS

PAKISTAN GOT NUCLEAR PLANS FROM COMMUNIST CHINA
Guess who first gave Pakistan plans for nuclear weapons?  None other that its best friend in the world � Communist China.  Report: Easterblogg (from The New Republic Online)

INDIA ELECTIONS COMING IN APRIL
India, longtime rival to Communist China, will likely go to the polls in April to elect a new Parliament.  The Bharatiya Janata Party, which made India a nuclear power amid security concerns focused on the PRC, is heavily favored to win another term in office.  Report:
CNN

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